To calculate the total cost for $3,500 in traveler's checks with a 1% fee charged, follow these steps:
Step 1: Determine the fee rate as a decimal.
Since 1% is equivalent to 0.01 in decimal form (because 1% = 1/100), we'll use this value for our calculation.
Step 2: Calculate the fee amount.
To find the fee amount, multiply the total amount of traveler's checks by the fee rate:
Fee Amount = Amount of Traveler's Checks × Fee Rate
Fee Amount = $3,500 × 0.01
Step 3: Perform the multiplication.
$3,500 × 0.01 = $35
This means the fee amount charged for the $3,500 in traveler's checks is $35.
Step 4: Calculate the total cost including the fee.
To find the total cost, add the fee amount to the original amount of the traveler's checks:
Total Cost = Amount of Traveler's Checks + Fee Amount
Total Cost = $3,500 + $35
Step 5: Perform the addition to find the total cost.
$3,500 + $35 = $3,535
Therefore, the total cost for $3,500 in traveler's checks with a 1% fee charged is $3,535.
